The effective regulation of the water sector is an increasingly critical focus of the work of the Department of Water Affairs. While the water services regulatory strategy has been fully developed, a comprehensive regulatory strategy for water resources management is still required - one that focuses on the overall regulation of water resources as a critical part of water resources management.
There is a need to consider regulation in its broadest understanding which includes economic, technical and governance regulation, as defined in the previous report under this project (A Survey of Approaches to Water Resources Regulation, WRC 2009).
Technical regulation, such as water quality control, is related to, but distinct from governance or economic regulation of water management and water services institutions. Governance and economic regulation in the water sector cover issues such as ensuring good corporate governance, regulating financing and protection of consumers from excessive tariffs/charges.
Water for sustainable growth and development in an increasingly stressed water environment that will experience significant future change (demographic, growth and climate) provides a key sub-text for the project. In this regard, of key importance is that improved regulation provides certainty and stability for investment and job creation, and that the benefits of regulation should outweigh the costs of regulation. In particular, taking into the socio-economic context of South Africa, it is critical that water regulation is consciously pro-poor.
A particular challenge is, thus, ensuring the development of a regulatory framework that is suitable for the needs of a developing country, that serves to protect the interests of the poor and the marginalized, and that contributes to the transformation and democratization of South African society.
This research project, Towards Water Resources Regulation in South Africa, aims to assess international best practice on technical/policy regulation of water resource management and linkages to water services regulatory approaches; clarify definitions, objectives and scope for effective and transparent water resources regulation in South Africa; assess the institutional principles and considerations to guide the roles, responsibilities and institutional arrangements; examine appropriate tools for achieving effective regulation, understand the benefits and risks to using regulatory impact assessments and to disseminate the findings of the project to relevant decision makers.